Government companies help private power plants

Through public assets, in New Delhi the private projects will resolve issues of lack of fuel, funds or even power purchase agreement for stressed power plants. The National Tariff Policy allows state-run power generation companies to sign power purchase agreements with discoms without tariff bidding.
So the government companies are poised to play a crucial role in the revival of stressed power plants by acquiring them or enabling their lenders to operate them on contract.
The proposal includes converting debt into equity, bringing last mile equity for under-construction projects, or auctioning the power projects once the lenders take over their management.

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